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Archive for June 4th, 2012

With Rick Santorum focusing his efforts on ridding the world of that pesky birth control and Newt Gingrich turning his attention to the truly noble pursuit of convincing a woman to permit an open marriage, we’re now left with two candidates for the 2012 presidential election: Republican Mitt Romney and the incumbent, Democrat Barack Obama.  

And while we’re loathe to disagree with the geniuses at The Onion, to our readers the upcoming election is much more than simply deciding between the “money man and the black guy.” No, there are tax dollars at stake, and with the candidates campaigning on vastly differing tax platforms, where you fall within the economic spectrum will likely go a long way towards determining who’ll get your vote.

Middle class salaried employee? You’re probably pulling for Obama.

Millionaire fund manager? You’re damn sure voting for Romney.

For everyone else, there is much to consider when deciding which candidate’s tax plan works best for you. Unfortunately, there’s no “one stop shop” containing the details of each man’s policies, as many of the proposals have been presented as part of less formal campaign rhetoric or, in the case of Obama, future budget proposals. So to facilitate the decision-making process, we’ve culled through the articles, campaign websites, and speeches to put together the following high-level comparison of each candidate’s tax promises, policies and proposals.

Please note, these proposals WILL change, but as of June 4, 2012, the following accurately represents the tax policies upon which Mitt Romney and Barack Obama will be seeking election for president. We’ll update them as necessary.

Click to download a PDF: Presidential Tax Comparison June 2012 (2)

or click to enlarge:

page 1:

 

page 2:

 

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A few things you may have missed this weekend while realizing that while your home town may smell like a tire fire and continue to lack an Ikea, at least it’s not prone to tarantula invasions.  

Much has already been made of the data included in the Spring 2012 Statistics of Income Bulletin, but I found this paragraph on page 62 of the PDF to be particularly revealing about the state of our economy:

Taxpayer donations of corporate stock and clothing have consistently represented the highest amounts of all donations claimed. However, while the amount of clothing donations has remained fairly consistent since Tax Year 2007, the amounts deducted for corporate stock have declined significantly. In Tax Year 2007, taxpayers reported $23.7 billion in corporate stock donations, and, together, the declines in 2008 and 2009 represent a decrease of 59.1 percent since 2007.

Why would charitable contributions of corporate stock decline 59.1% in a mere two years? It’s quite simple, really. The Dow Jones fell from an all-time high of 14,279 on October 11th, 2007 to a low of 6,440 on 9th March, 2009, a nominal drop of 54.9%, and 56.9% when adjusted for inflation. And while we’d like to believe philanthropy drives charitable contributions, when it comes to donations of stock, the motivation is typically to get rid of appreciated stock without having to recognize the gain on the appreciation. By donating the stock, not only is gain not triggered, but the donor is entitled to a contribution deduction equal to the FMV of the stock.

But when a stock tanks and becomes worth less than what you paid for it, there’s no reason to donate it to charity, because you don’t get to recognize the underlying loss. Instead, its much smarter to simply sell the stock, recognize the loss, and then donate the cash to charity.

Congrats to Ozzy and Sharon Osbourne on paying off $700,000 of their $2,000,000 tab to the IRS for unpaid 2007, 2008 and 2009 taxes. When reached for comment, Ozzy explained, “xhdkjlskk adiereryy sijijrlekjslcke  jlkjpwldj.”

California prepares to vote on Proposition 29, which would tack an additional $1 tax on a pack of cigarettes. While I’m all for the occasional sin tax, as far as deterrents go, I can’t imagine an additional buck a pack will make nearly the impact of this commercial.  

Sorry, Garden Staters, but starting next July, when you buy your Tag Body Spray on Amazon you’ll be paying 7% sales tax.

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